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Cautious or Courageous: How to Make Sure You’re Making Good Decisions

Management Courses in Perth - Make Good Decisions

When we conduct leadership development or management courses for Perth companies, we encourage a culture where a healthy degree of creativity and risk are rewarded. However, we don’t recommend taking risks for the sake of taking risks.

To make decisions effectively, you need to understand how you assess risks and rewards and what both represent to you. Many people are averse to even small amounts of risk, while some are attracted to the excitement of taking big ones. Some take big chances in their personal lives but are conservative when it comes to their profession or career; some are the opposite.

Your Risk Profile

There are 3 basic risk propensity groups: courageous risk takers, those averse to risk and reactive risk-takers whose response depends upon the situation.

A courageous risk-taker will actively seek out high-risk situations because they enjoy the sensation or feeling, especially when they overcome the danger. On personality tests, they will usually score high in openness and extroversion, but low in conscientiousness, natural reaction and agreeableness. They usually trust self-validation over the opinions of others.

A cautious person will have the opposite personality traits. They will present as introverted with low openness, but with high scores in conscientiousness, natural reaction and agreeableness.

Reactive risk-takers are often in the middle for most personality scores. They also have different risk propensities in the categories of personal safety, health, recreational, social, personal finance and career.

How Knowing Your Risk Propensity Can Help You Make Better Decisions

If you understand your profile, you can figure out how it influences your decisions. If you are cautious, you may want to take more risk. If you are courageous, you may want to learn how to assess risk in a manner that keeps you from taking unacceptable risks.

Here are 2 steps to making better decisions.

Assess the Risk Inherent in Each Option

Assess the dangers, the likelihood of them actually happening and the consequences of the worst-case scenario. After assessing each option, compare risk and reward and rank them.

Compare Your Preferred Option to Your Risk Propensity

Ask yourself if your risk propensity influenced your decision and if another option may be better.

Making Better Decisions

Cautious or courageous, the Integral Development leadership programs can take your decision-making to the next level. Call (08) 9242 8122 today.

Ron Cacioppe

Ron Cacioppe is the Managing Director of Integral Development and holds a BSc, an MBA and a PhD. He has taught in the Graduate School of Management at Macquarie University, Curtin University and the University of Western Australia.

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